Natural disasters, political issues, taxes, and tariffs, are all things affecting our supply chain, that we have no control over. You may not able to prevent the way those influence our supply chain, but by knowing supply chain risks you can be well prepared for what’s coming in 2020.
Supply Chain Risks
Instead of trying to figure out how to prevent uncontrolled events from negatively impacting supply chains, you can spend your time working on being prepared and taking action on events you can control.
Let’s look at 5 supply chain risks to know about for 2020
- Material Shortages
When talking about risks within the supply chain, having enough materials is a major concern – You can have products without materials to make them first. Most production for raw materials is still globalized, but we see more and more companies’ sources finished products locally and regionally.
Why is that?
When materials are globalized, it can create a widespread disruption in an event of high demand or production bottlenecks. For example, there is a major concern for longer-term used materials for lithium-ion right now (which is globalized).
So working with local and regional supply sources can help ensure safety around these concerns. Companies, such as our apple rubber, are great examples of ways to achieve quality control.
- Environmental Changes
It’s undeniable that climate change is happening around us – air quality vs. pollution. Our authorities all around the world are now creating new relations and rules to combat it.
These new regulations, such as in China now, can have strict rules, like reducing emissions of burning coal, which is stopping production for 500 car models.
- Cyber Security
We are in a digital age and everything we do is becoming more and more online. Security problems such as hacks, cyber theft, and privacy should be a major concern for every company.
The only way to prevent this is by having proper supply chain management that ensures cybersecurity.
- Economic Risks
The global trade war is constantly bringing economic uncertainty. This can have huge affect regulations and pressure on industrial suppliers, which will bring distress to supply risk management.
Higher costs and tariffs for imports can bring financial pressure on suppliers trying to bring in raw materials. Adapting to new business models may be a new risk in 2020 for supply chains.
- Product Recalls
The public has become more and more aware of quality issues and this is causing fore stricter compliance and quality control. Recalls for pharmaceuticals within the U.S. almost double in 2018 and looks to be only getting worse.
This growing number of recalls can have a detrimental effect on supply chains and bring in much more risks, this is something we need to pay close attention to in 2020.
Supply Chain Management
The risks within the supply chain environment are constantly changing and evolving, so staying on top of the most recent and upcoming possible risks is crucial. Each year can bring in new risks!
For 2020, pay close attention too
- Material shortages
- Environment changes
- Cyber Security
- Economic risks
- Product recalls
With close observation of these, you can protect your supply line and be ready for supply chain risks in 2020.
Natural disasters, political issues, taxes, and tariffs, are all things affecting our supply chain, that we have no control over. You may not able to prevent the way those influence our supply chain, but by knowing supply chain risks you can be well prepared for what’s coming in 2020.
Supply Chain Risks
Instead of trying to figure out how to prevent uncontrolled events from negatively impacting supply chains, you can spend your time working on being prepared and taking action on events you can control.
Let’s look at 5 supply chain risks to know about for 2020
- Material Shortages
When talking about risks within the supply chain, having enough materials is a major concern – You can have products without materials to make them first. Most production for raw materials is still globalized, but we see more and more companies’ sources finished products locally and regionally.
Why is that?
When materials are globalized, it can create a widespread disruption in an event of high demand or production bottlenecks. For example, there is major concern for longer-term used materials for lithium-ion right now (which is globalized).
So working with local and regional supply sources can help ensure safety around these concerns. Companies, such as our editor’s choice, are great examples of ways to achieve quality control.
- Environmental Changes
It’s undeniable that climate change is happening around us – air quality vs. pollution. Our authorities all around the world are now creating new relations and rules to combat it.
These new regulations, such as in China now, can have strict rules, like reducing emissions of burning coal, which is stopping production for 500 car models.
- Cyber Security
We are in a digital age and everything we do is becoming more and more online. Security problems such as hacks, cyber theft, and privacy should be a major concern for every company.
The only way to prevent this is by having proper supply chain management that ensures cybersecurity.
- Economic Risks
The global trade war is constantly bringing economic uncertainty. This can have huge affect regulations and pressure on industrial suppliers, which will bring distress to supply risk management.
Higher costs and tariffs for imports can bring financial pressure on suppliers trying to bring in raw materials. Adapting to new business models may be a new risk in 2020 for supply chains.
- Product Recalls
The public has become more and more aware of quality issues and this is causing fore stricter compliance and quality control. Recalls for pharmaceuticals within the U.S. almost double in 2018 and looks to be only getting worse.
This growing number of recalls can have a detrimental effect on supply chains and bring in many more risks, this is something we need to pay close attention to in 2020.
Supply Chain Management
The risks within the supply chain environment are constantly changing and evolving, so staying on top of the most recent and upcoming possible risks is crucial. Each year can bring in new risks!
For 2020, pay close attention too
- Material shortages
- Environment changes
- Cyber Security
- Economic risks
- Product recalls
With close observation of these, you can protect your supply line and be ready for supply chain risks in 2020.
Alana Groom
Bella Duckworth
Ella Summers
Karin Hoover
Linjo Joson
Molly Milson
TraceyC